11 NCAC 16 .0207 COMMON BLOCK
(a) As used in this Rule, "Common Block" means a grouping of similar policy form types for which the pooling of experience is actuarially justified and for which the rate revisions are based upon the common experience. A Common Block may include both open and closed policy form types.
(b) If a company establishes a Common Block for compliance with G.S. 58-51-95(h), with respect to all future rate revision filings, the company shall request a common uniform rate revision to apply to all policy forms in the Common Block and not an apportionment by form. Once policy forms are grouped into a Common Block, they must remain grouped for future rate filings. Actuarially justified apportionments of the common rate increase, due to differences in benefits between forms, shall be allowed.
(c) If a company establishes a Common Block for compliance with G.S. 58-51-95(h), then compliance with G.S. 58-3-275 is required for the Closed Block portion of policy forms that make up the Common Block.
(d) The requirements of 11 NCAC 16 .0201 with respect to a common block shall be satisfied for all policy forms within the common block if the first filing is made prior to July 1, 2007. In the event that a policy form is added to a common block, the next annual filing for the common block shall meet the requirements of this Rule for that policy form.
History Note: Authority G.S. 58‑2‑40; 58-3-275; 58‑51‑95; 58‑63‑15(7)b;
Eff. July 1, 2006.